LIFE INSURANCE PROVIDED BY AIA AUSTRALIA - Product Disclosure Statement and Policy Document Version 4, Prepared 1 April 2021 - CommBank
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LIFE INSURANCE PROVIDED
BY AIA AUSTRALIA
Product Disclosure Statement and Policy Document
Version 4, Prepared 1 April 2021
aia.com.au
Life Insurance provided by AIA Australia Life Insurance provided by AIA Australia
How this Product Disclosure Statement and Policy Document (PDS) works "Your premium” is the premium referable to benefits covering
you as the Life Insured. Also, “your Sum Insured” is the sum
This PDS describes the main features of Life Insurance provided by AIA Australia, including the
insured of a benefit covering you as the Life Insured and
terms and conditions of the policy as well as any exclusions. Please read it carefully as it is designed
“your benefit” or “your cover” are references to benefits
to help you decide if Life Insurance provided by AIA Australia will meet your individual needs.
covering you as the Life Insured.
Details in this PDS are of a general nature only and do not take into account your personal You, your, we, our and us
• An insured benefit covering you as the Life Insured is
circumstances including your objectives, financial situation, needs or any cover you may currently hold.
payable when you suffer an insured event in accordance In this PDS:
You should, before acting on this, consider the appropriateness of the information to your with the terms of the Policy.
circumstances and read this PDS before deciding to acquire or continue to hold Life Insurance You and your refers to any
• We will pay a benefit covering you as the Life Insured in existing or potential customer
provided by AIA Australia. If you are not sure you could consider consulting a financial adviser the terms of the Policy as set out in this PDS. See the “Who
before making any decisions in relation to any financial product. who is, or is likely to become,
receives the benefit?” section of this PDS on page 24 for the Life Insured and Policy
further information. Owner under the Policy.
Who issues your policy?
Life Insurance is provided and issued by AIA Australia Limited ABN 79 004 837 861, AFSL Issuing cover We, us, our, the insurer
230043 (AIA Australia) and distributed by Commonwealth Bank of Australia ABN 48 123 123 or AIA Australia, refers to
If we issue cover, it will be issued on the Policy
124, AFSL 234945 (CBA). AIA Australia is not part of the CBA Group, being CBA and its related AIA Australia Limited.
Commencement Date by AIA Australia to you as the Policy
corporations from time to time. CBA and its related entities do not sell, issue or guarantee the Owner named on the Policy Schedule:
obligations or performance of AIA Australia or the products it offers and this insurance product
does not represent a deposit with or liability of either CBA or any of its related bodies corporate. i) in consideration of the payment of the premium as stated on the Policy Schedule; and
Neither CBA nor any of its related corporations are authorised representatives or authorised ii) on the basis of the application, declarations and any other statements made by you to us in
representatives of AIA Australia or our related companies. connection with the Policy.
For more information on the financial services CBA provides, you should read CBA’s Financial If we issue cover, this PDS will be included in the terms and conditions of your Policy. Please see
Services Guide and Privacy Policy on www.commbank.com.au. If you purchase a Life Insurance page 39 for a list of the documents that will make up your Policy.
policy, CBA is paid a commission which is a percentage of your premium.
A few points before we get started…
Life Insurance means Life Insurance provided by
AIA Australia, as described in this PDS.
Income Protection means Income Protection provided
by AIA Australia as described in the Product Disclosure
Understanding this PDS
Statement titled “Income Protection provided by
Some words in this PDS AIA Australia” dated 21 October 2019 or in any subsequent
have a special meaning version of that Product Disclosure Statement.
– you’ll recognise them
The Life Insured is the Policy Owner.
because they begin with
capital letters. You can find • A Policy is an agreement between you, as the Policy Owner,
the meanings of these terms and us. You have the right to instruct us in relation to the
under Definitions on pages Policy (for example by making claims, by asking us to change
37–40. Policy features as permitted under the terms of the Policy,
by exercising options under the Policy terms and by asking
us to cancel the Policy). You are responsible for paying all the
premiums under the Policy.
PAGE 2 PAGE 3
Life Insurance provided by AIA Australia Life Insurance provided by AIA Australia
CONTENTS
How this Product Disclosure Statement and Policy Document (PDS) works.......................... 2 How your Policy works....................................................................................................................................... 30
Other Policy terms and conditions. ........................................................................................................ 30
Welcome to Life Insurance provided by AIA Australia. . . . . . . . . . . . . . . . . . ................................................................. 6
Other things to consider (risks). .............................................................................................................. 31
Why choose Life Insurance provided by AIA Australia?. . . ................................................................. 7
Life Insurance overview... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................................................................. 9 Who to contact.................................................................................................................................................... 32
Applying for cover. ................. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................... 10 Your information.... ............................................................................................................................................. 33
When does your cover start and stop?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .............................................................. 10 Your duty of disclosure. ............................................................................................................................... 33
If you change your mind – the cooling-off period.. . . . . . . . . . . . . .............................................................. 11 AIA Australia Privacy Policy. ..................................................................................................................... 34
What you’re covered for. ....... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................... 12 Definitions............... ............................................................................................................................................. 37
Main benefit. .......................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .............................................................. 12
Direct Debit Request Service Agreement....................................................................................................... 41
Life cover............................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .............................................................. 12
Additional cover options......... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................... 14
Total and Permanent Disability (TPD) cover.. . . . . . . . . . . . . . . . . . . . . . . .............................................................. 14
Trauma cover......................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .............................................................. 16
What you’re not covered for.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................... 18
Benefit Indexation.................. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................... 20
AIA Vitality. ............................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................... 22
AIA Vitality eligibility requirements.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .............................................................. 22
How the claims process works.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................... 24
If you need to make a claim.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .............................................................. 24
Premiums and charges. .......... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................... 26
Cancelling or changing your cover or personal information.. . . . . . . ............................................................... 29
PAGE 4 PAGE 5
Life Insurance provided by AIA Australia Life Insurance provided by AIA Australia
WELCOME TO LIFE INSURANCE PROVIDED BY AIA AUSTRALIA Why choose Life Insurance provided by AIA Australia?
1 Comprehensive life insurance cover from $100,000 up to $1,000,000 to take care of your
There are some things in life you’d probably rather not think about, even though you know they’re family when they need it most.
important – like life insurance. Many Australians recognise the need for life insurance, yet it is 2 Advance payment upon your death of $15,000 of your Life cover benefit to assist your loved
only when faced with a tragedy that most come to understand how important it is to be properly ones with any immediate expenses such as funeral costs.
insured.
3 Option to apply for up to $750,000 Total and Permanent Disability cover to help support your
To help protect you, your family and your lifestyle, AIA Australia, one of the country’s leading lifestyle if you become Totally and Permanently Disabled.
life insurers, is providing Life Insurance to Commonwealth Bank of Australia (Commonwealth 4 Option to apply for up to $250,000 Trauma cover to assist you financially if you were to suffer
Bank) customers. Through Commonwealth Bank, AIA Australia will help Australians protect their a Trauma Event such as a Heart Attack or Cancer so you can focus on recovering, not on
financial future and improve their health and wellbeing by offering a range of life insurance paying the bills.
solutions through a brand they already know and trust.
5 Access to AIA Vitality*, the personalised, science-backed health and wellbeing program that
Life Insurance provided by AIA Australia offers up to $1,000,000 Life cover, to help take care of rewards you for your healthy lifestyle. The range of benefits include a Life Insurance premium
your loved ones should the worst happen. Your benefit can be used for any purpose – to pay off discount of 10% if you achieve an AIA Vitality Status of Silver or higher. AIA Vitality premium
the mortgage, provide for your children’s education or even as an investment fund to provide discounts are subject to change in accordance with the terms and conditions governing the
for future living expenses. You can apply in just minutes, with cover available immediately to AIA Vitality program and do not form part of your insurance contract.
successful applicants. Plus, you have the option to apply for Trauma and Total and Permanent
* Where your annual premium on your Life Insurance Policy or your combined annual premium on all Life Insurance
Disability cover, for even greater financial protection. and Income Protection policies is equal to or greater than $750 per person.
Life Insurance provided by AIA Australia may help you take care of your loved ones and allow 6 Easy to apply online via NetBank or the CommBank app with no medicals or blood tests, and
them to live the life you had planned for them, with the financial support they need. you’re covered as soon as your application is accepted.
7 A Life Insurance policy that gives you worldwide cover whilst temporarily travelling abroad –
so you are protected wherever you go – 24 hours a day, 7 days a week.
8 Purchase an Income Protection Policy in addition to your Life Insurance Policy for a 5% ongoing
discount across both policies†.
† The discount will continue to apply whilst both eligible policies remain in place.
9 Enjoy a 5% Partner discount for you and your Partner when you both take out Life Insurance
or Income Protection policies†‡.
† The discount will continue to apply whilst both eligible policies remain in place.
‡ To be eligible for the Partner discount, you and your Partner must be living at the same residential address.
10 Cover continues regardless of changes to your circumstances – once you’re accepted, your
cover will not be affected by changes to your health or pastimes as long as you keep meeting
the Policy terms and conditions.
PAGE 6 PAGE 7
Life Insurance provided by AIA Australia Life Insurance provided by AIA Australia
Life Insurance overview Expiry age
With Life Insurance provided by AIA Australia, you can apply for one, or a combination of covers to bestage when cover for that benefit
The
suit your needs, lifestyle and budget. ceases. The benefit will cease at the
This table summarises the features and benefits of Life Insurance provided by AIA Australia. next Policy Anniversary after your
expiry age.
Please read the ‘What you’re not covered for’ section on page 18 to understand what is not covered.
MAIN BENEFIT ADDITIONAL COVER OPTIONS
Product feature Life cover Total and Permanent Disability (TPD) cover Trauma cover
If you die, we will pay your full Life benefit Sum If you are Totally and Permanently Disabled, we will If you suffer a listed Trauma Event, we will pay your
Insured. pay your full TPD benefit Sum Insured. full Trauma benefit Sum Insured.
We will reduce your Life and Trauma Sums Insured We will reduce your Life and TPD Sums Insured by
by any amount we pay for TPD and your premium will any amount we pay for Trauma and your premium
be adjusted accordingly. will be adjusted accordingly.
Age at entry 18 to 65 18 to 59 18 to 59
Eligibility • a Commonwealth Bank customer living See page 14 for requirements N/A
permanently in Australia; and
• an Australian citizen or permanent resident (as
approved by the Department of Home Affairs), or
a New Zealand citizen.
Expiry age of cover 75 65 65
Minimum Sum Insured $100,000 $100,000 $25,000
We will set a higher minimum Sum Insured to ensure
you meet our minimum premium requirements of
$180 per annum. Once your Policy is issued, your Sum
Insured may only be altered by agreement between you
and us or as set out in this PDS.
Maximum Sum Insured at Policy Commencement Date Cannot exceed the Life cover amount. Cannot exceed 50% of the Life cover amount.
If you are covered under more than one Life Insurance
Policy or more than one insurance policy issued by us,
we may limit your claim to the maximum Sum Insured
available to you at your Policy Commencement Date,
or so that your total Sum Insured under all insurance
policies issued by us does not exceed $2 million.
Please refer to Benefit Limitations on page 30.
Age 18 to 45 $1,000,000 $750,000 $250,000
Age 46 to 54 $750,000 $500,000 $250,000
Age 55 to 59 $500,000 $300,000 $250,000
Age 60 to 65 $500,000 N/A N/A
Built-in benefits Terminal Illness benefit – If you are diagnosed N/A N/A
with a Terminal Illness, we will pay your full Life
benefit Sum Insured.
Final Expenses benefit – If you die, we will pay a
$15,000 advance of your Life benefit Sum Insured
towards your final expenses e.g. funeral costs. This
amount will reduce your Life benefit Sum Insured.
PAGE 8 PAGE 9
Life Insurance provided by AIA Australia Life Insurance provided by AIA Australia
APPLYING FOR COVER Life, TPD and Trauma cover will cease on the earliest of:
• your death;
You must meet the eligibility requirements in order to apply for cover. Only one person can be • payment of your Life cover benefit;
insured under the Policy. • when a benefit is paid for TPD which reduces the Life cover Sum Insured to nil;
The Life Insured will also be the Policy Owner under the Policy. • for TPD cover, when a benefit is paid for TPD or where payment of a benefit for a Trauma Event
reduces the TPD cover Sum Insured to nil;
Eligibility requirements • for Trauma cover, when a benefit is paid for a Trauma Event or where payment of a benefit for
At the time of application and when receiving this PDS, you must be: TPD reduces the Trauma cover Sum Insured to nil;
• a Commonwealth Bank customer living permanently in Australia; • in respect of each type of cover, the Expiry Date, which is the Policy Anniversary Date on or
immediately after your:
• an Australian citizen or permanent resident (as approved by the Department of Home Affairs),
or a New Zealand citizen; - 75th birthday for Life cover; and
• aged 18 to 65 for Life cover; and - 65th birthday for TPD and Trauma cover;
• aged 18 to 59 for TPD and Trauma cover. • you ceasing to be an Australian citizen or permanent resident (as approved by the Department
If you do not meet the above eligibility criteria you will not be eligible to purchase Life Insurance. of Home Affairs) or a New Zealand citizen;
• the cancellation of your cover at your request; and
Application process • the cancellation of your cover by us due to non-payment of premiums or as otherwise permitted
You can apply for cover online via NetBank or the CommBank app. To help assess your application, by law.
you will need to answer some health, medical and lifestyle questions. This is called underwriting.
If you change your mind – the cooling-off period
When does your cover start and stop? Should you change your mind after you become a Policy Owner, you have a 30 day cooling- off
Your cover will start on the date we notify you that we have accepted your application. This is period, where you can cancel your Policy and receive a full refund of premiums paid.
known as your Policy Commencement Date. As long as you continue to pay your full premium The cooling-off period starts from the earliest of the date you receive your Policy documents from
instalments when due, your cover will continue subject to the terms of your Policy regardless of us (including this PDS) and the end of the fifth day after we send these documents to you.
changes to your health, occupation and pastimes until the Expiry Date.
There’s just one exception, the cooling-off period automatically ends if you make a claim.
We will send you a Policy Schedule which will outline your accepted benefits, Sum Insured, Policy
To cancel your Policy within the cooling-off period, please contact the AIA Australia Customer
Commencement Date and each cover’s Expiry Date.
Service team:
Email: customerservice@lifeinsurancebyaia.com
Mail: AIA Australia Customer Service
PO Box 6143, Melbourne VIC 3004
Phone: 1800 491 588
PAGE 10 PAGE 11Life Insurance provided by AIA Australia Life Insurance provided by AIA Australia WHAT YOU’RE COVERED FOR Main benefit Life cover Life cover pays a lump sum benefit of up to $1,000,000 in the event of your death or diagnosis with a Terminal Illness. The benefit can be used to help your loved ones pay off debts, such as your mortgage, or to provide for future financial needs such as childcare, school fees and day to day living expenses. A death certificate must be provided to us before a death benefit payment can be made. Additionally, in the event of your death, your beneficiaries can request an advance payment of $15,000 to cover immediate costs such as funeral costs. This amount will reduce your Life benefit Sum Insured. The minimum amount of Life cover you can apply for is $100,000. We may require you to apply for a higher Sum Insured to ensure you meet our minimum premium requirements of $180 per annum. The maximum amount of cover you can apply for is $1,000,000, depending on your age. PAGE 12 PAGE 13
Life Insurance provided by AIA Australia Life Insurance provided by AIA Australia
ADDITIONAL COVER OPTIONS TPD case study*
Bob is 45 and works as a tailor for a small clothing alteration company. He is married with two
When you take out Life cover, you also have the option to apply for Total and Permanent Disability small children and has a mortgage of just over $100,000 remaining on his house.
cover and Trauma cover. Please refer to pages 14 to 17 for more information. Bob took out combined Life Insurance cover of $750,000 (main benefit) with additional Total and
Permanent Disability (TPD) cover of $500,000 (additional cover) so that in the event that he had a
Total and Permanent Disability (TPD) cover serious Injury or Sickness that prevented him from working, his family would be taken care of financially.
TPD cover pays a lump sum benefit of up to $750,000 to help support your family and lifestyle Five years later, Bob was involved in a serious car accident which rendered him unable to perform
needs if you become Totally and Permanently Disabled. The minimum amount of TPD cover you his job as a tailor. After being absent from his job for six months due to his injury and under the
can apply for is $100,000 and the maximum amount of TPD cover you can apply for is $750,000, regular care of a Medical Practitioner, Bob met the definition of TPD (Any Duties) and received a
depending on your age. Your TPD cover cannot exceed your Life cover Sum Insured. lump sum TPD benefit payment $500,000.
When you make a claim under TPD cover, you will be assessed under the TPD (Any Duties) This lump sum benefit payment enabled Bob to cover his medical bills including paying for an
definition and you will need to meet that definition in order to receive a payment of the occupational therapist. He was also able to pay off the remainder of his mortgage and make
TPD Sum Insured. additional modifications to his house. This meant he could continue to support his family and live
You will only be assessed for TPD after you have been absent from employment due to an Injury or comfortably in his house without having to move.
Sickness for six months. As Bob had taken out Life Insurance with additional TPD cover, after his TPD claim was paid, his
Life cover (main benefit of $750,000) was reduced by the equivalent amount that was paid out for
Eligibility TPD and his TPD cover ended. As a result, Bob had $250,000 remaining on his Life cover.
To be eligible for TPD cover, at the time of application you must be: * This is an example only to illustrate the potential benefit of taking out TPD, and should not be relied upon as indicative of
benefits payable under the TPD benefit.
• Employed; or
This provides general information only, without taking into account the objectives, financial situation, needs or personal
• Self-Employed (spending no more than 20% of your working hours at your place of residence); circumstances of any individual and is not intended to be financial, legal, tax, medical or other advice. The scenarios
provided are for illustrative purposes only. You should consider the appropriateness of this information in the context of
• working at least 20 hours per week; and such factors and this PDS.
• not performing heavy manual work*.
* Occupations that are considered as performing heavy manual work are: occupations such as semi- skilled workers and
unqualified tradespersons, who perform heavy manual work (e.g. cleaners, truck drivers, fencing contractors) and unskilled
workers who perform extra heavy manual work (e.g. concreters, earth-moving workers, carpet layers).
If you do not meet the above eligibility criteria, you will not be eligible to purchase TPD.
Important: Please refer to the definition of Total and Permanent Disability (Any Duties) on page
40 for more details.
PAGE 14 PAGE 15Life Insurance provided by AIA Australia Life Insurance provided by AIA Australia
Trauma cover Trauma case study*
Trauma cover helps to protect your financial health by providing a lump sum benefit if you suffer Navi has been working as an accountant for the past eight years in Brisbane, where she lives
one of the listed Trauma Events below. Your benefit can be used for any purpose, such as taking with her partner and three kids. When she turned 40, Navi decided to take out a combined Life
time off work whilst you recover or making lifestyle changes during this difficult time, or assisting Insurance cover of $800,000 (main benefit) with additional Trauma cover of $250,000 (additional
with living expenses or out of pocket medical expenses. cover) to help protect her family.
The maximum amount of Trauma cover you can apply for is 50% of your Life cover Sum Insured, Not long after taking out life insurance, Navi was diagnosed with breast cancer. After being
up to a maximum of $250,000. diagnosed with breast cancer, she had her entire breast removed and underwent chemotherapy
as recommended by her Medical Specialist.
A Trauma benefit is payable if you suffer one of the Trauma Events listed below (as the event is
defined in the Policy). She was able to claim a lump sum benefit payment of $250,000 Trauma cover.
This benefit allowed Navi to receive treatment as well as covering any additional medical expenses.
Trauma Events This enabled her to rest in between her treatment sessions instead of having to return to work
• Cancer • Loss of Speech immediately. Her family’s general living expenses were met without Navi stressing about finances.
• Chronic Kidney Failure • Multiple Sclerosis As Navi took out Life Insurance and additional Trauma cover, once her Trauma claim was paid, her
• Coma • Paralysis Life cover (main benefit) was reduced by the equivalent amount ($250,000 paid out for Trauma)
and her Trauma cover ended. As a result, she has $550,000 remaining on her Life cover.
• Coronary Artery Bypass Surgery • Pneumonectomy
* This is an example only to illustrate the potential benefit of taking out Trauma cover and should not be relied
• Heart Attack • Severe Burns upon as indicative of benefits payable under the Trauma cover benefit.
• Loss of Hearing • Stroke This provides general information only, without taking into account the objectives, financial situation,
needs or personal circumstances of any individual and is not intended to be financial, legal, tax, medical
Please refer to the “Definitions” section on pages 37 to 40 for full definitions of the covered or other advice. The scenarios provided are for illustrative purposes only. You should consider the
Trauma Events. appropriateness of this information in the context of such factors and this PDS.
The time at which a Trauma Event will be deemed to have occurred is:
• in the case of a Trauma Event which requires a diagnosis – at the date of diagnosis;
• in the case of a Trauma Event which involves a medical procedure – at the date that the event
which the procedure is intended to address was first diagnosed (provided the procedure is
subsequently undertaken); or
• in the case of any other Trauma Event – at the date of the relevant Trauma Event.
No Trauma benefit is payable in respect of a Trauma Event which is deemed to have occurred
in accordance with the above within 90 days of the date on which your cover commences or is
reinstated.
Where a Trauma Event requires a determination, the person making that determination must act
reasonably and must base that determination solely on our definition of the relevant Trauma Event,
after a study of all relevant and reasonably available medical evidence (including, where relevant,
histological material and clinical presentation based on the medical history, physical examination,
radiological studies and the results of any other diagnostic procedures performed on you).
PAGE 16 PAGE 17Life Insurance provided by AIA Australia Life Insurance provided by AIA Australia
WHAT YOU’RE NOT COVERED FOR
Please read this section carefully to understand what is not covered.
“X” indicates where you will not be covered for a claim under Life cover, TPD cover and
Trauma cover.
Exclusions Main Additional cover
benefit options
You will not be covered for: Life cover TPD Trauma
cover cover
• death resulting from suicide or a deliberately self-inflicted Injury or
Sickness in the first 13 months from the Policy Commencement Date,
Policy Reinstatement Date or, where there is a requested increase X N/A N/A
in the Sum Insured, from the date of that increase on the increase
amount.
• disability caused or accelerated by, or a Trauma Event suffered as a
result of, any deliberately self-inflicted Injury or Sickness, including N/A X X
attempted suicide.
• any death, disability or Trauma Event caused as a result of you
engaging in any criminal activity or any unlawful act or whilst X X X
imprisoned, resulting from your imprisonment.
• any death, disability or Trauma Event caused by war
X X X
(whether declared or not*), riots or civil commotion.
• a Trauma Event suffered within the first 90 days from the Policy
Commencement Date or Policy Reinstatement Date or, where there
N/A N/A X
is a requested increase in the Sum Insured, from the date of that
increase on the increase amount only.
• any death, Injury or Sickness arising as a result of you engaging in
the following activities in the course of your occupation where such
activities constitute Duties of your occupation:
- working above 10 metres from the ground;
- working underground;
- working offshore; X X X
- underwater diving;
- working with explosives;
- working as a professional sportsperson or coach; or
- employment in the armed forces.
* This exclusion will not apply to death caused by Life Insured being on active military service
PAGE 18 PAGE 19Life Insurance provided by AIA Australia Life Insurance provided by AIA Australia
BENEFIT INDEXATION Life Insurance policy with Benefit Indexation – case study*
Rebecca has been working as an office administrator for the past eight years in Perth, where she
You can choose to include benefit indexation which lives with her husband and two kids. When Rebecca was 35 she took out Life Insurance cover for
automatically increases your Sum Insured so it keeps up $250,000 and chooses to include benefit indexation as part of her Policy.
with inflation. Benefit indexation may reduce the risk of By including benefit indexation as part of her life insurance cover, Rebecca’s life insurance
inflation eroding your benefit. You can choose to include
benefit will automatically increase every year which may reduce the risk of inflation eroding
automatic increases to your
At application stage, you choose whether to include, or not her benefit. Every year, on her Policy Anniversary, her cover (Sum Insured) will increase by the
cover each year
to include, benefit indexation increases on your Policy. higher of the Consumer Price Index Increase (CPI Increase) or 5%. This means her Life cover
If you select this option, benefit will increase to keep up with inflation which may assist with lifestyle changes, including
If you have selected to include benefit indexation as part of
each year on the Policy increases in expenses.
your Policy, we will automatically increase the Sum Insured
Anniversary Date we
at the Policy Anniversary each year by the higher of the After a year, Rebecca’s cover increased from $250,000 to $262,500. In line with this, Rebecca’s
automatically increase your
Consumer Price Index Increase (CPI Increase) and 5%. premium also increased to account for the higher cover (Sum Insured) and her age at the time.
Sum Insured by the higher of
Your premium will be adjusted to allow for the higher Sum Rebecca sadly passed away after her 40th birthday. Rebecca’s family submitted a death claim.
the CPI Increase and 5%.
Insured and age at each Policy Anniversary Date. Her Life cover benefit had increased to $319,070 due to the inclusion of benefit indexation.
Benefit indexation increases are not limited to the Benefit indexation helped future-proof her Life cover for her family, at the time they needed it.
maximum Sum Insured at Policy Commencement Date. This means that increases to your Sum
Insured as a result of Benefit Indexation may result in your Sum Insured exceeding the maximum Life Insurance policy without Benefit Indexation – case study*
sum insured allowed at Policy Commencement Date. Rebecca has been working as an office administrator for the past eight years in Perth, where she
Once benefit indexation has been applied to your Policy, you can choose to remove it at any time lives with her husband and two kids. When Rebecca was 35 she took out Life Insurance cover for
by contacting us. Your request to remove benefit indexation increases must be received by us $250,000 and chooses not to include benefit indexation as part of her Policy.
before the Policy Anniversary Date on which the increase would apply. By not including benefit indexation as part of her life insurance cover, Rebecca’s Sum Insured
Once requested, benefit indexation increases will be removed from your Policy from the next did not automatically increase every year. Even though Rebecca’s cover (Sum Insured) is not
Policy Anniversary Date. increasing every year, her premium will still increase in line with her age at the time.
Benefit indexation will cease on the Expiry Date of the benefit. Rebecca sadly passed away after her 40th birthday. Her family submitted a death claim. The Sum
Insured of Rebecca’s Policy remained at $250,000.
If you have chosen not to include benefit indexation increases on your Policy at application stage
* These are examples only to illustrate the differences of taking out Life cover with benefit indexation and Life cover without
but have changed your mind, you may add benefit indexation up to 60 days from your Policy benefit indexation and should not be relied upon as indicative of benefits payable under the Life cover benefit.
Commencement Date without requiring underwriting and our acceptance (grace period). This provides general information only, without taking into account the objectives, financial situation, needs or personal
If after the grace period you decide to add benefit indexation, then acceptance will be subject to circumstances of any individual and is not intended to be financial, legal, tax, medical or other advice. The scenarios
provided are for illustrative purposes only. You should consider the appropriateness of this information in the context of
underwriting and your cover being below the ‘Maximum Sum Insured at Policy Commencement such factors and this PDS.
Date’ as outlined in the “Life Insurance Overview Section” on pages 8 to 9.
Note: Where benefit indexation is selected, it will apply to all benefits under that policy.
PAGE 20 PAGE 21Life Insurance provided by AIA Australia Life Insurance provided by AIA Australia
AIA VITALITY When you will no longer be eligible to access AIA Vitality
You will no longer be eligible to access the AIA Vitality program as a result of holding a Life
Insurance Policy if your:
AIA Vitality eligibility requirements
• annual premium on all Life Insurance and Income Protection policies falls below $750
Eligibility for membership to the AIA Vitality program arises under and is subject to the (for example, if your sum insured is reduced or your additional cover options expire); or
AIA Vitality terms and conditions. Access to the AIA Vitality program as a result of holding Life
• cover ceases on all Life Insurance and Income Protection policies (including expiry and
Insurance requires your annual premium on your Policy or combined annual premium on all Life
cancellation of cover) (see the “When does your cover start and stop“ section on pages
Insurance and Income Protection policies to be equal to or greater than $750 per person.
10 to 11).
If you are eligible to join the AIA Vitality program, we will provide you with instructions which you
The AIA Vitality terms and conditions set out other circumstances where membership to the
must follow in order to obtain your membership to the AIA Vitality program.
AIA Vitality program may terminate. Termination of your AIA Vitality membership will not reduce
About AIA Vitality – an award-winning health and wellbeing program your premiums.
Life Insurance provided by AIA Australia gives you access to AIA Vitality, a personalised, science- Termination of the AIA Vitality membership will result in the removal of the AIA Vitality premium
backed program that supports you every day to make healthier lifestyle choices. It shows you how discount.
healthy you are now, provides the tools to help you start improving your health right away, and
offers amazing rewards to keep you motivated along your journey.
For more information
To view the AIA Vitality terms and conditions and to find out more about how AIA Vitality works,
By activating your AIA Vitality membership, and taking steps to understand and improve your
simply visit aiavitality.com.au
health, you can earn discounts or cashbacks on spa treatments, e-Gift cards, flights, gym
memberships and more. Rules relating to premium discounts and ongoing AIA Vitality eligibility for Life Insurance where
you are an AIA Vitality Member are located at aiavitality.com.au
As you make healthier choices like increasing your physical activity, eating better or going for
a health check you earn AIA Vitality Points. These Points contribute to your overall AIA Vitality AIA Vitality partners, benefits, premium discounts and rewards are subject to change at any
Status (Bronze, Silver, Gold and Platinum). The higher your status, the greater the rewards. time and do not form part of your insurance contract. For the most up-to-date information and to
view the AIA Vitality Terms and Conditions go to aiavitality.com.au, additional partner Terms and
The range of benefits include a Life Insurance premium discount of 10% if you achieve an
Conditions may also apply.
AIA Vitality Silver Status or higher. The premium discount is applied at your next premium
payment date. Capitalised terms in this section are referenced from the AIA Vitality Terms and
AIA Vitality Membership contact details:
Conditions. To find out more visit aiavitality.com.au
Email: queries@aiavitality.com.au
Mail: AIA Vitality
PO Box 6313, Melbourne VIC 3004
Phone: 1800 848 254
AIA Vitality membership features are not insurance and are exempt from regulation as financial products under
the Corporations Act 2001 pursuant to the ASIC Corporations (Non-cash Payment Facilities) Instrument 2016/211.
Membership to the AIA Vitality program is not offered under this PDS.
PAGE 22 PAGE 23Life Insurance provided by AIA Australia Life Insurance provided by AIA Australia
HOW THE CLAIMS PROCESS WORKS
If you need to make a claim
You should notify us as soon as reasonably possible of any claimable event under your policy.
To make a claim:
1 Contact us for a claim form:
Phone: 1800 491 588
Email: claims@lifeinsurancebyaia.com
2 Mail your completed claim form to:
Claims Team, AIA Australia Customer Service
PO Box 6143, Melbourne VIC 3004
Things to note
To assess the claim we may need additional information. We may ask for medical evidence,
documents or other information (which in some cases may need to be provided by an appropriate
Medical Practitioner and/or Medical Specialist) as reasonably appropriate and relevant in
connection with your claim. Once the claim has been approved by us, the benefit will be paid.
We will not pay a benefit:
• if the Policy has lapsed; or
• if you do not meet the terms and conditions of the Policy; or
• if a claim is fraudulent (and you will need to repay it if it has already been paid in part or full).
Who receives the benefit?
If we pay a claim, we will pay the benefit as follows.
• On your death, the Life and Final Expenses benefits will be paid in the following order:
- any beneficiaries nominated by you (at time of application, or at any time by contacting us on
1800 491 588);
- your estate (where no beneficiaries have been nominated).
• The Terminal Illness, TPD and Trauma benefits will be paid to you.
PAGE 24 PAGE 25Life Insurance provided by AIA Australia Life Insurance provided by AIA Australia
PREMIUMS AND CHARGES Changes to your premium at your Policy Anniversary
Your premium is guaranteed from one Policy Anniversary Date to the next. The premium payable
by you for each year of the Policy will be based on your age at the applicable Policy Anniversary
What is the premium? Date, and will take into account any increases to your Sum Insured as a result of benefit
The premium is the amount that needs to be paid to maintain your Life Insurance Policy, including indexation or as otherwise agreed between us and you.
access to AIA Vitality, if applicable. Your premium also includes government charges such as
stamp duty and taxes. Premium frequency and payment method
It is your responsibility to pay the premium for your Policy. You can pay the premiums on a fortnightly, monthly or annual basis by credit card or by direct debit
from a bank account. If payment is by direct debit, the payment arrangement will be governed by
How your premium is calculated the terms of the Direct Debit Request Service Agreement, which is attached to this PDS.
Your premium amount will depend upon:
If the Policy premiums aren’t paid
• the information provided by you at application,
If the Policy premiums aren’t paid within 60 days of the due date (or within 30 days if premiums
• the level of cover and options you choose, are paid fortnightly), the Policy will lapse. You won’t be covered for any period from the date your
• your payment frequency, policy lapses (see the “Cover Reinstatement” section on page 29).
• whether benefit indexation has been chosen (the higher of the CPI Increase and 5% each year),
Change of smoking status
• your health history,
If you have ceased smoking tobacco or any other substance for a continuous period of 12 months
• your age,
you may change your status from a smoker to a Non-smoker, for the purpose of determining your
• gender, insurance premium. Contact us on 1800 491 588 to obtain an application for Non-smoker rates.
• smoking status (premium rates are higher for smokers), and The application for Non-smoker rates is subject to approval and written confirmation by us.
• any discounts that apply.
Changes to fees and charges
If you selected the optional TPD cover, your premium will also depend on your employment
situation and occupation. We may vary any fees and charges, including premiums, with effect from your next Policy
Anniversary Date, provided that any such variations are reasonably necessary to protect our
Your premium also takes into account our reasonable operating costs, including but not limited to legitimate business interests. This includes in circumstances where there are increases in the
costs incurred in administering your policy and providing the AIA Vitality program, if applicable. costs we incur, or are reasonably likely based on actuarial analysis to incur, in providing the
insurance cover set out in this PDS.
What is the minimum premium?
You will be notified in advance of any fee changes that are, or result in, an increase in fees or costs
The minimum premium Is $180 per annum.
for you. We will advise you in writing at least 30 days prior to any change.
At application stage we will require your cover to be at a level sufficient to meet the minimum
This Policy will not be singled out for an increase in fees or charges.
premium.
PAGE 26 PAGE 27Life Insurance provided by AIA Australia Life Insurance provided by AIA Australia
Disclosure of Remuneration
CANCELLING OR CHANGING YOUR COVER OR PERSONAL
From time to time, we may make payments to Commonwealth Bank or other entities involved in
distributing Life Insurance based on commercial arrangements. When we do so, such payments INFORMATION
are included in your premiums and do not represent any additional charge or cost to you.
Cancelling, decreasing or increasing your cover
Taxation and imposts
You may cancel, decrease or increase your cover at any time. If premiums are paid fortnightly or
Based on current tax laws, we expect that Life Insurance premiums would not generally be tax monthly, we will cancel or change your cover from the end of the fortnight or month for which the
deductible and benefits paid under the Policy would not be treated as income for tax purposes. cover has already been paid. If premiums are paid annually, we will cancel or change your cover
The tax treatment of your Policy will ultimately depend on your individual circumstances, changes from the next monthly anniversary of your Policy Commencement Date, and refund any excess
in tax law and the views of the Australian Taxation Office. You should seek professional tax advice premiums or require extra premiums (as applicable) from that time.
in this respect, if necessary.
Any increase in your cover (including adding benefit indexation increases after the 60 day grace
Where we are, or believe we will become, liable for any tax or other imposts levied by any period) will be subject to underwriting and acceptance by us. We will limit your maximum Sum
Commonwealth or State government, authority or body in connection with this Policy, we may Insured to the maximum amount available based on your age (see the “Life Insurance overview”
reduce, vary or otherwise adjust any amounts (including but not limited to premiums, charges table on pages 8 to 9).
and benefits) under this Policy in the manner and to the extent we determine to be reasonably
appropriate to take account of the tax or impost. Any decrease in your cover will be subject to the minimum Sum Insured, as well as any minimum
premium requirements (see the “What is the minimum premium? section on page 26).
To cancel, decrease or increase your cover, please contact the AIA Australia Customer Service
team on 1800 491 588.
Cover reinstatement
If the Policy lapses (see the “If the Policy premiums aren’t paid” section on page 27), we will send
you a letter confirming that you have an additional 30 days in which to reinstate cover without
requiring underwriting and our acceptance. We are not otherwise bound to accept any requests to
reinstate cover, and any such requests are subject to underwriting and acceptance by us.
If cover is reinstated, we won’t pay for any claims that occur between the date cover ceased and
the Policy Reinstatement Date.
Changing your personal information
Please let us know as soon as practicable if you change your contact details or if there’s any other
change which may need to be reflected on your Policy, by:
Email: customerservice@lifeinsurancebyaia.com
Phone: 1800 491 588
PAGE 28 PAGE 29Life Insurance provided by AIA Australia Life Insurance provided by AIA Australia
HOW YOUR POLICY WORKS Currency
All amounts under the Policy whether payable by us or by you are payable in Australian currency.
Other Policy terms and conditions Economic sanctions
Benefit limitations Notwithstanding the terms of your Policy, we are subject to certain laws and economic sanctions
(both local and international) which may prohibit us from completing some financial transactions
We may limit the total amount we pay under the policies covering you in two ways: and/or dealings with you or your beneficiaries. We will not deal with you or your beneficiaries or
1 if you are covered under more than one Life Insurance provided by AIA Australia Policy, we complete a financial transaction under the terms of the Policy if we are prohibited from doing so
may limit the total Sum Insured under all policies to the maximum Sum Insured available for by law (including a law relating to sanctions).
your age at Policy inception, as set out in the “Life Insurance overview ” section on pages 8 to
9; and Statutory fund
2 if you are covered under more than one insurance policy issued by us, we may limit the Sum The Life Insurance Policy will be written in our Statutory Fund No.1. This Policy does not share in
Insured under this Policy so that your total Sum Insured under all insurance policies issued any profits.
by us does not exceed $2 million.
Cover continues regardless of changes to your circumstances
If we limit cover for these reasons, we will refund premiums for the reduced portion of the Sum
Insured on a pro-rata basis. The limit will not be applied to Sum Insured amounts in excess of the Subject to payment of your premiums and the conditions that will end cover (see the “When does
maximum Sum Insured due to benefit indexation increases. your cover start and stop?” section on pages 10 to 11), your cover will continue in accordance
with its terms regardless of any changes in your health, occupation or pastimes.
Applicable law
This Policy is governed by the laws of the Australian State or Territory in which it was issued. Any
Other things to consider (risks)
dispute or action in connection to the Policy shall be conducted and determined in Australia. There are risks associated with choosing insurance cover that you need to consider.
You may select an insurance product that does not meet your needs so you should make sure that
Improvements you read this PDS so you know what is and isn’t covered.
From time to time, we may make changes or updates to the terms on which new Life Insurance You may choose an amount of cover that’s not right for you so you need to consider both your
products can be purchased from us. needs and the cost of the cover and you should seek advice if necessary.
Where we do make changes or updates, only improvements to your Policy will be applied. We may If you apply for cover or later apply to increase or vary your cover, your age, health or
decide to administer these changes or updates to your Policy on the basis that you would not be circumstances may prevent you from being eligible so you should not cancel existing life
disadvantaged by having these changes or updates. insurance cover until your new cover is in place.
Where we do this, the relevant change or update will be applied to this Policy with effect from Premiums may change over time, which may affect your capacity to keep paying your premiums
the first date that a new Life Insurance policy containing the changed or updated term can be on time. For more information please see the “Premiums and charges” section on pages 26 to 27.
purchased from us. However, the relevant change or improvement will not be applied in relation to
the assessment of claims made under this Policy in relation to any health conditions you already
had prior to this date.
Where we do make a change or update to the terms on which new Life Insurance products can be
purchased from us and we decide to apply the change or update to your Policy in accordance with
the above paragraph, we will notify you of this within 12 months following the date on which the
change or update is applied to your Policy.
PAGE 30 PAGE 31Life Insurance provided by AIA Australia Life Insurance provided by AIA Australia
WHO TO CONTACT YOUR INFORMATION
For enquiries about your Life Insurance Policy: Your duty of disclosure
Email: customerservice@lifeinsurancebyaia.com You have a duty to tell us anything that you know, or could reasonably be expected to know, which
Mail: AIA Australia Customer Service may affect our decision to insure you and on what terms.
PO Box 6143, Melbourne VIC 3004 You have this duty until we agree to insure you, and also before you extend, vary or reinstate the
Phone: 1800 491 588 Policy.
For complaints: You do not need to tell us anything that:
Email: complaints@lifeinsurancebyaia.com • reduces our risk; or
Mail: AIA Australia Complaints Manager • is common knowledge; or
PO Box 6143, Melbourne VIC 3004 • we know or should know as an insurer; or
We will promptly investigate your complaint. We will refer it if necessary to our Internal Dispute • we waive your duty to tell us about.
Resolution Committee and it should be resolved within 45 days. In special circumstances it may
take longer to resolve, in which case we will advise you. If you do not tell us something
If you are not satisfied with our response, you may take the matter up with an external dispute If you do not tell us anything you are required to, and we would not have insured you if you had
resolution body, the Australian Financial Complaints Authority (AFCA). told us, we may avoid the contract within three years of entering into it.
If we choose not to avoid the contract, we may reduce the amount you have been insured for,
You can contact AFCA at:
based on a statutory formula. We may only exercise this right within three years of entering into
Phone: 1800 931 678 the Policy if it provides death cover.
Website: afca.org.au
If we choose not to avoid the Policy or reduce the amount you have been insured for, if your
Email: info@afca.org.au
Policy does not provide death cover, we may vary the contract in a way that places us in the same
Mail: GPO Box 3, Melbourne, Victoria 3001
position we would have been in if you had told us everything you should have.
For AIA Vitality Membership enquiries: If your failure to tell us is fraudulent, we may refuse to pay a claim and treat the contract as if it
Email: queries@aiavitality.com.au never existed.
Website: aiavitality.com.au We may apply these rights separately to each type of cover that we consider could form a
Mail: AIA Vitality separate policy.
PO Box 6313, Melbourne VIC 3004
Phone: 1800 848 254
PAGE 32 PAGE 33Life Insurance provided by AIA Australia Life Insurance provided by AIA Australia
AIA Australia Privacy Policy • your intermediaries, including your financial adviser, the distributor of your insurance
Policy and the trustee or administrator of your superannuation fund, your employer, your
Summary treating doctor or your legal representatives, or anyone acting on your behalf (together, your
“Representatives”);
This section summarises key information about how we handle Personal Information including
sensitive information. More information can be found in the full version of the AIA Australia • your employer, bank, medical professionals or health providers;
Privacy Policy (Privacy Policy) published at aia.com.au • partners used in our activities or business initiatives;
We are part of the AIA Group. Your privacy is important to us and we are bound by the Privacy Act, • our distributors, clients, and reinsurers;
and other laws which protect your privacy. • other insurers including worker’s compensation insurers, authorities and their agents;
• other super funds, trustees of those super funds and their agents;
Why we collect, use and disclose Personal Information
• regulatory and law enforcement agencies;
We collect, use and disclose personal and sensitive information (“Personal Information”):
• other bodies that administer applicable industry codes; and
• to process applications for our products and services;
• other parties described in our Privacy Policy.
• to assist with enquiries and requests in relation to our products and services;
Where we provide your Personal Information to a third party, the third party may collect, use and
• for underwriting and reinsurance purposes; disclose your Personal Information in accordance with their own privacy policy and procedures.
• to administer, assess and manage your products and services, including claims; These may be different to those of AIA Australia.
• to understand your needs, interests and behaviour and to personalise dealings with you; Parties to whom we disclose Personal Information may be located in Australia, South Africa, the
• to provide, manage and improve our products and services; United States, the United Kingdom, Europe, Asia and other countries including those set out in our
• to maintain and update our records; Privacy Policy. We will comply with the Financial Services Council Life Insurance Code of Practice
(“Code”) when we collect, use and disclose your Personal Information.
• to verify your identity and/or authority to act on behalf of a customer;
• to detect, manage and deal with improper conduct and commercial risks; Other important information
• for research, reporting and marketing purposes; By providing information to us or your Representatives, submitting or continuing with a form or
• otherwise to comply with local and foreign laws and regulatory obligations; and claim, or otherwise interacting or continuing your relationship with us, you confirm that you agree
• for any other purposes as outlined in the Privacy Policy. and consent to the collection, use (including holding and storage), disclosure and handling of
Personal Information as described in the Privacy Policy on our website and that you have been
How we collect, use and disclose Personal Information notified of the matters set out in this summary and the AIA Australia Privacy Policy. You agree that
we may not issue a separate notice each time Personal Information is collected.
Personal Information may be collected from various sources, including:
You have the right to access the Personal Information we hold about you, and can request the
• forms you submit;
correction of your Personal Information if it is inaccurate, incomplete or out of date. Requests for
• our records about your use of our products and services; access or correction can be directed to us using the details in the “Contact Us” section below.
• our records from your dealings with us, including telephone, email or online interactions; and Our full Privacy Policy provides more detail about our collection, use (including handling and
• public sources, social media, and third parties described in our Privacy Policy. storage), disclosure of Personal Information and how you can access and correct your Personal
Further, we will collect and use Personal Information as and when this is required or authorised Information, make a privacy related complaint and how we will deal with that complaint, and your
by law. opt-out rights. Always ensure you are reviewing the most up-to-date version of the Privacy Policy
as published at aia.com.au.
We may provide, collect and exchange your Personal Information with third parties, including:
For the avoidance of doubt, the Privacy Policy applicable to the management and handling of
• our related bodies corporate and joint venture partners;
Personal Information will be the most current version published at aia.com.au from time to time,
• the Life Insured, Policy Owner, or beneficiaries of an insurance Policy; which shall supersede and replace all previous Privacy Policies and/or Privacy Statements and
• service providers and contractors; privacy summaries that you may have previously received or accessed.
PAGE 34 PAGE 35You can also read
